IV:Copper swings between gains and losses on U.S. budget fears, China PMI
Investing.com - Copper futures fluctuated between modest gains and losses on Monday, as investors digested disappointing manufacturing data out of China and as U.S. budget concerns persisted.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.332 a pound during European morning trade, up 0.1%.
Copper prices traded in a range between USD3.294 a pound, the daily low and a session high of USD3.339 a pound, the strongest since September 20.
The December contract settled 0.7% higher at USD3.329 a pound on Friday.
Copper prices were likely to find support at USD3.261 a pound, the low from September 26 and resistance at USD3.359 a pound, the high from September 20.
In China, data showed that the HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2, indicating the recovery in the world’s second largest economy remains fragile. Economists had expected an unchanged reading.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Separately, political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Elsewhere on the Comex, gold for December delivery advanced 0.1% to trade at USD1,340.70 a troy ounce, while silver for December delivery inched up 0.1% to trade at USD21.85 a troy ounce.
